PROBLEMS OF INNOVATIVE DEVELOPMENT OF UKRAINIAN INDUSTRY: ECONOMIC AND LEGAL ASPECTS

Section "Economics": Economic and Legal Problems of Sustainable Development

Abstract

High innovation activity is one of the most important conditions for effective socio-economic development of the country. However, in Ukraine, as in other transition economies, the level of innovation development is unsatisfactory. The study was conducted to diagnose problems and develop proposals to stimulate innovative development of the national economy and its industrial sector. In the analytical part of the work, based on the results of the comparative analysis, it is stated that the innovativeness of Ukrainian industrial products is the lowest in Europe. It was found that in addition to the low level of innovation of Ukrainian industry products, the problem is the excessively high or extremely low export orientation of the latter. Thus, the share of products sold abroad in the volume of sold innovative products of Ukraine in 2019 was 54.2 %, while in Poland — 46.2 %. In terms of manufacturing, the highest export orientation of innovative products in Ukraine is characteristic of metallurgical production (90.6 %), production of rubber and plastic products (82 %), repair and installation of machinery and equipment (63.6 %). It is emphasized that excessively high export orientation of innovative products in the conditions of socio-political instability and intensification of globalization processes creates potential risks for the economic security of the country. Three groups of factors influencing innovation activity in Ukraine are substantiated, which include: the level of industrialization of the economy and manufacturability of industrial production; customs policy, foreign economic influence, economic globalization; institutional and macroeconomic environment, special legal framework, mental features of entrepreneurial behavior, etc. It is empirically proven that the low level of innovation of domestic industrial products is a consequence of the long-term policy of agrarianization of the national economy and at the same time unstable dynamics of development of manufacturing industries. The structure of value added of domestic industrial productions is constructed and the place of Ukraine and the EU countries in the world rating on value of an index of economic globalization, de facto is defined. A critical analysis of the legal framework for the implementation of state customs policy of Ukraine. Proposals to the domestic legislation on regulatory and legal regulation and rationalization of innovation parks as an effective way to increase the level of innovation and growth of industrial production are substantiated.

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